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SAFe-Agilist Exploring Lean Portfolio Management Practice Question

Which of the following describes the 'Participatory Budgeting' event in Lean Portfolio Management?

⚠ Common exam trap

Test-takers frequently mistake Participatory Budgeting for top-down annual budget planning dictated exclusively by senior executives, missing its core collaborative and consensus-driven nature.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

A collaborative session to adjust the budget allocations among value streams.

Participatory Budgeting is a collaborative process where stakeholders and decision-makers work together to allocate budget to value streams. By involving those closest to the work, the organization fosters transparency and agreement on investment priorities. This process ensures that the budget is aligned with the most critical strategic needs and increases buy-in from the various teams, as they have a voice in how the available capital is distributed across the portfolio.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    A mandate where the executive leadership team decides the budget without input.

    Why it's wrong here

    Participatory budgeting specifically relies on collective input from key stakeholders, not top-down dictates. A top-down approach ignores the expertise of those who know the value streams best, leading to misaligned priorities and reduced ownership of the resulting financial decisions by the teams that must execute them.

  • ✓

    A collaborative session to adjust the budget allocations among value streams.

    Why this is correct

    This event is specifically designed to involve stakeholders in the process of reallocating funds to the most important value streams. It promotes alignment, ensures that resources follow the highest-value work, and helps the organization arrive at a budget that reflects a shared consensus on the portfolio's strategy.

  • ✗

    A tool used to track individual employee salaries and benefits.

    Why it's wrong here

    Participatory budgeting is for strategic funding of value streams, not for managing individual payroll. Managing salaries is an HR and operations function. Mixing this with portfolio-level strategic budgeting would create confusion and distract from the purpose of allocating capital to projects that drive future business growth.

  • ✗

    An annual audit of all expenses to ensure legal compliance.

    Why it's wrong here

    Budgeting is a forward-looking exercise in allocating capital, whereas an audit is a backward-looking exercise in verifying compliance. While both are necessary, the participatory budgeting event is focused on strategy and future investment, not on the forensic verification of past expenditures and legal regulatory adherence.

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Last reviewed September 2026 · checked against the official Scaled Agile exam blueprint

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